AGENDA of the UNIT APPROVAL COMMITTEE for Sri City SEZ ( Multi Product ) MEETING to BE HELD on 12-12-2014

Office of the Development Commissioner, Sri City SEZ(Multi Product), Sathyavedu Mandal, Chittoor District, A.P. Pin : 517 588.

AGENDA OF THE UNIT APPROVAL COMMITTEE for Sri City SEZ ( Multi Product ) MEETING TO BE HELD ON 12-12-2014.

INDEX

1. Agenda Item – 1 Ratification of the Minutes of the Meeting of the Unit Approval Committee held on 08-10-2014

2. Agenda Item – 2 (a) Proposal of M/s. Sri City Pvt. Ltd., Developer, for procurement/purchase of duty free items viz., fixtures etc., available in RBI-3 from M/s. Amphenol India Pvt. Ltd., which is under exit, on transfer.

Agenda Item – 2 (b) Proposal of M/s. A. S. Cargo Movers Pvt. Ltd., Co- Developer for approval for transfer of the Co-Developer status to their joint venture company viz., M/s. Indo Space AS Industrial Park Pvt. Ltd., for the same area of land and RBF developed and allotted to M/s. Control Components India Pvt. Ltd., a functional unit in Sri City SEZ.

3. Agenda Item – 3 (a) No Proposal has been received for setting up an unit in Sri City SEZ.

Agenda Item - 3 (b) Proposal of M/s. Vermeiren India Rehab Pvt. Ltd., for approval of specified services for claiming exemption from payment of Service Tax.

4. Agenda Item – 4 (a) Review of Annual Performance of the Units in Sri City SEZ for the year 2013-14.

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UNIT APPROVAL COMMITTEE FOR M/S. SRI CITY (P) LIMITED, MULTI-PRODUCT SPECIAL ECONOMIC ZONE AT SATYAVEDU MANDAL, CHITTOOR DISTRICT, A.P. ….

AGENDA: 1

Ratification of the Minutes of the Meeting of the Unit Approval Committee held on 08-10-2014.

AGENDA: 2 (a):

M/s. Sri City Pvt. Ltd., Developer vide letter No. 084/DC/UAC dtd. 18.11.2014 (copy enclosed) have requested for procurement of duty free material lying in the RBF 3 in Sri City SEZ from M/s. Amphenol Mobile Communication Products India Pvt. Ltd., on transfer. The Developer has submitted the list of items viz., Electrical Equipment, Air Conditioners, Furniture, Air Compressor etc. proposed to be transferred, duly certified by Chartered Account with Cost value (Rs. 83,13,366/-) as well as depreciated value (Rs.39,13,943/-).

The proposal of the Developer may be considered as the request of M/s. Amphenol Mobile Communication Products India Pvt. Ltd., for exit from SEZ scheme is under process. This will facilitate the unit to complete the exit process and the RBF 3 may be allotted to prospective entrepreneurs with existing fixtures and furniture etc., ready to use facilities.

The proposal of the Developer is placed before UAC for approval please.

AGENDA: 2 (b):

I. Proposal of M/s. A. S. Cargo Movers Pvt. Ltd., Co-Developer for approval for transfer of the Co-Developer status to their joint venture company viz., M/s. Indo Space AS Industrial Park Pvt. Ltd., has been discussed in the UAC Meetings held on 10.09.2014 and 08.10.2014, the minutes of which are reproduced below for ready reference :

“ Minutes of (Supl. AGENDA No. 2) of UAC Meeting held on 10.09.2014:

Proposal of M/s. A. S. Cargo Movers Pvt. Ltd., Co-Developer of Sri City SEZ vide letter dtd.05.09.2014 for approval for transfer of the Co-Developer status to their Joint Venture Company viz., M/s. Indo Space AS Industrial Park Private Limited, for the same area of land and RBF developed and allotted to M/s. Control Components India Pvt. Ltd., a functional unit in Sri City SEZ. In the new company the M D of M/s. A.S. Cargo Movers Pvt. Ltd., will have 17% of share holding, as stated by them. The joint venture has not been formed by merger of both the companies. The proposal is for exit of M/s. A.S. Cargo Movers Pvt. Ltd., from Co-Developer Status from Sri City SEZ.

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On scrutiny of the proposal and Half Yearly Return in Form-E for the period October, 2013 to March, 2014 and Quarterly Return in Form E for the period from April, 2014 to June, 2014 of the Co- Developer and after deliberations the UAC observed the following :-

1. The Co-Developer vide letter dtd. 23.01.2014 submitted the proof of payment of Customs Duty with Interest as per assessment of Authorized Officer vide TR 6 Challan dtd.23.01.2014 of SBI, Srikalahasti Branch for Rs. 3,84,440(Duty Rs. 2,62,524 + Interest Rs.1,21,916) and therefore complied the decision of the UAC meeting held on 19.10.2012(Suppl.Agenda No.3).

2. There is no closing stock of un-utilized duty free material as per half yearly and quarterly returns for OM-2014 and AJ-2014 respectively.

3. The UAC noted that M/s. A S Cargo Pvt. Ltd., the Co-Developer has already been advised vide e mail dtd. 15.04.2014 to follow the procedure as laid down in the Minutes of the earlier Meetings of the Board of Approval, No. 59.12 (iii) dtd. 30.08.2013 and 61.9 (xiii) dtd.10.03.2014, reproduced below.

(i) Seamless continuity of the SEZ activities with unaltered responsibilities and obligations for the altered developer entity;

(ii) Fulfillment of all eligibility criteria applicable to developers, including security clearances etc., by the altered developer entity and its constituents;

(iii) Applicability of and compliance with all Revenue / Company Affairs /SEBI etc. rules which regulate issues like capital gains, equity change, transfer, taxability etc.

(iv) Full financial details relating to the transfer of equity shall be furnished immediately to the Member (IT) CBDT, Department of Revenue.

(v) The assessing officer under the Income Tax Act, 1961, shall have the right to assess the taxability of the amount arising out of the transfer of equity.

(vi) The applicant shall comply with relevant State Government laws, including those relating to lease of land, as applicable.

4. As the Member from Income Tax Department has not turned up for the meeting, the UAC decided to defer the proposal for want of comments from the Member. It has also been decided to refer the proposal to the Commissioner of Income Tax, Tirupati for his comments on the issues mentioned above (wherever applicable) :

The UAC also decided to advise M/s. A.S. Cargo Movers Pvt. Ltd., Co-Developer to follow the procedure as given below:

1. The New Co-Developer required to enter into an agreement with the Developer.

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2. The New Co-Developer required to apply to the DC as per Application form A-1 along with copy of agreement with the Developer. They shall also apply simultaneously for approval of BoA for Authorized Operations through DC.

3. M/s. A S Cargo Movers Pvt. Ltd., have to get No Objection Certificate from the Developer to the effect that Lease Hold rights on Assets and Liabilities as Co-Developer will be transferred to new Co-Developer.

4. M/s. A. S. Cargo Movers Pvt. Ltd., have to get No Due Certificate from Customs Wing of this office.

5. No Objection Certificate from M/s. Control Components India Pvt. Ltd., on Rs. 100/- Non- Judicial stamp paper for change of Co-Developer/Lesser.

Accordingly the UAC decided to defer the proposal of the Co-Developer for the next UAC Meeting. “

“ Minutes of (Supl. AGENDA No. 3) of UAC Meeting held on 08.10.2014:

M/s. A.S. Cargo Movers Pvt. Ltd., Co-Developer vide letter dtd. 06.10.2014(copy enclosed) submitted the progress/steps taken as per minutes of UAC held on 10.09.2014 communicated to them vide our letter dtd. 23.09.2014, for exit from Co-Developer status.

As comments from the Member from Income Tax Department has not been received sofar and the Member did not turn up for the meeting, the UAC discussed and decided to defer the proposal and send a reminder to I.T. Department. “

II. M/s. A.S. Cargo Movers Pvt. Ltd., vide letter dtd. 06.10.2014 submitted QPR for July – September, 2014 and Half Yearly Progress Report for April – September, 2014 in Form –E (Copies enclosed). There is no closing stock of materials with Co-Developer as on 30.09.2014. There is no activity by Co-Developer for the last 2 years.

III. M/s. A S Cargo Movers Pvt. Ltd., vide e mail dd. 03.11.2014 have sent a certificate dtd. 22.08.2014 (valid for 180 days) obtained from their jurisdictional I.T. Authority viz., O/o the Dy. Commissioner of Income Tax, Company Circle-I(1), Chennai-600034 permitting them to transfer their asset to M/s.Indospace AS Industrial Park Pvt. Ltd., (copy enclosed).

IV. O/o the Commissioner of Income Tax, Tirupati (UAC Member) vide letter dtd. 26.11.2014 also sent their comments, as called for. (copy enclosed)

The proposal of the Co-Developer is placed before the UAC for discussion and decision pl.

AGENDA: 3 (a): No Proposal has been received for setting up an unit in Sri City SEZ.

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AGENDA: 3 (b): M/s. Vermeiren India Rehab Pvt. Ltd., an approved new unit in the Sri City SEZ vide letter dtd. 03.12.2014 applied for approval of specified services for claiming exemption from payment of Service Tax. The unit has applied for all 66 default list of services approved by Department of Commerce.

The Department of Commerce vide Instruction No. 79 dtd. 19.11.2013, letter No.D.12/19/2013-SEZ dtd. 19.06.2014 and 09.07.2014 (copy enclosed) has revised the uniform default list of services to be followed by SEZs.

The above proposal is placed before the UAC for discussion and approval pl.

AGENDA : 4 ( a ):

Units, which have completed one year of operation as on 31.03.2014 (for 2013-14) from the date of commencement of commercial production, have to be monitored as per Rule 54 of SEZ Rules, 2006.

There are 21 (18 Mfg. + 3 units in FTWZ) units which have completed one year or more of operations as on 31.03.2014. Three manufacturing units viz., M/s. Saakar Printing, Design & Engineering Pvt. Ltd., M/s. Lovepac Converting Pvt. Ltd., and M/s. Amphenol Mobile Communications Products India Pvt. Ltd., are under exit. Their performance is under review.

The Performance of the 15 Units have already been reviewed during the UAC Meeting held on 10.09.2014.

The following units have submitted APR for 2013-14 in Form-I duly certified by Chartered Accountant.

1. M/s. Rockworth Systems Furniture (India) P Ltd – Positive NFE achieved for 2013-14 and Cumulative period of 2 Years and 6 Months.

2. M/s. Nui Pulp & Paper Industries Pvt. Ltd - Positive NFE achieved for 2013-14 and Cumulative period of 1 year 11 months.

3. M/s. Pals Plush India Private Limited – Positive NFE achieved for 2013-14 and Cumulative period of 1 year 11 months. .

The proposal is placed before the UAC for approval please.

( P. S. B. SASTRY ) Asst. Development Commissioner E-mail: [email protected] Encl: as above.

M/s.Rockworth Systems Furniture (India) Pvt. Ltd., LoA No. : F.No.22/Sri City-9/SSEZ/2009 dtd. 16.12.2009 Review of Annual Performance for 2013-14 …. Rs. In lakhs. 1. Date of Commencement of Commercial Production : 19.09.2011 2. Period of Review & Completed years : 2013-14 ( 2 Year 6 Months )

3. FOB value of Exports : i. For 2013-14 : Rs. 3248.43 ii. Since Inception/Cumulative (2 Y 6 M ) : Rs. 7405.75

4. Total CIF value of Imported C.G.: Opening Balance – Rs. 1811.93 + 2013-14 - Rs. 14.09 Total Imported CG - Rs. 1826.02

5. Amortized portion of Imported CG i. for the year 2013-14 : Rs. 182.60 ii. since inception/Cumulative (2 Y 6 M ) : Rs. 456.50

6. CIF value of Imported RM/Consumables/Packing Material etc: i) Consumed for 2013-14 : Rs. 1182.19 ii) Consumed since inception/Cumulative (2 Y 6 M ) : Rs. 2846.69

7. Other Foreign Exchange Outgo i. for 2013-14 : Rs. Nil ii. Since inception/Cumulative (2 Y 6 M ) : Rs. Nil

8. Total Foreign Exchange Outgo : i. for 2013-14 : Rs. 1364.79 ii. Since inception/Cumulative ( 2 Y 6 M ) : Rs. 3303.19

9. i. Net Foreign Exchange earnings for 2013-14 - : Rs. 1883.64 (Sl. No. 3(i) - 8 (i) ] ii. Net Foreign Exchange since inception/cumulative (2 Y 6 M ) : Rs. 4102.56 (Sl. No. 3(ii) - 8 (ii) ]

10. i. Indigenous (2013-14) CG :Rs. Nil ii. Indigenous Cumulative :Rs. 238.23

11. i. DTA Sales (2013-14) :Rs. 978.17 ii. DTA Sales Cumulative :Rs. 1736.10

Remarks : - The Unit has completed 2 Years 6 Months. The Unit has achieved positive NFE for 2013-14 and also for the cumulative period of 2 years 6 months.

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M/s.Nui Pulp And Paper Industries Pvt. Ltd., , LoA No.: F.No. 22/Sri City-10/SSEZ/2009 dtd. 16.12.2009 Review of Annual Performance for 2013-14 …. Rs. In lakhs. 1. Date of Commencement of Commercial Production : 01.05.2012

2. Period of Review & Completed years : 2013-14 ( 1 Year 11 months )

3. FOB value of Exports : i. For 2013-14 : Rs. 1345.34 ii. Since Inception/Cumulative ( 1 Y 11 M ) : Rs. 3934.38

4. Total CIF value of Imported C.G.: Opening Balance : Rs. 2234.52 + 2013-14 : Rs. Nil Total Imported CG - : Rs. 2234.52

5. Amortized portion of Imported CG i. for the year 2013-14 : Rs. 223.45 ii. since inception/Cumulative( 1 Y 11 M ) : Rs. 428.28

6. CIF value of Imported RM/Consumables/Packing Material etc: i) Consumed for 2013-14 : Rs. 857.56 ii) Consumed since inception/Cumulative( 1 Y 11 M ) : Rs. 3185.13

7. Other Foreign Exchange Outgo i. for 2013-14 : Rs. Nil ii. Since inception/Cumulative( 1 Y 11 M ) : Rs. Nil

8. Total Foreign Exchange Outgo : i. for 2013-14 [Sl.No.5(i)+Sl.No.6(i)+Sl.No.7(i)] : Rs. 1081.01 ii. Since inception/Cumulative ( 1 Y 11 M ) : : Rs. 3613.41 [Sl.No.5(ii)+Sl.No.6(ii)+Sl.No.7(ii)] 9. i. Net Foreign Exchange earnings for 2013-14 :Rs. 264.33 (Sl. No. 3(i) - 8(i) ] ii. Net Foreign Exchange since inception/cumulative( 1 Y 11 M ):Rs. 320.97 (Sl. No. 3(ii) - 8 (ii) ]

10. i. DTA Sales 2013-14 :Rs. 22.68 ii.DTA Sales Cumulative :Rs. 55.55

11. i. Indigenous CG (2013-14) :Rs. 29.93 ii. Indigenous CG Cumulative :Rs.183.79

Remarks : - The Unit has completed 1 Year 11 Months. The Unit has achieved positive NFE for the year 2013-14 and also for the cumulative period of 1 year 11 moths.

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M/s. PALS PLUSH INDIA PVT LTD. LoA No.: F.No. 22/Sri City-29/VSEZ/2011 dtd. 21.05.2011 Review of Annual Performance for 2013-14 …. Rs. In lakhs. 1. Date of Commencement of Commercial Production : 02.05.2012

2. Period of Review & Completed years : 2013-14 ( 1 Year 11 months )

3. FOB value of Exports : i. For 2013-14 : Rs. 349.15 ii. Since Inception/Cumulative ( 1 Y 11 M ) : Rs. 361.80

4. Total CIF value of Imported C.G.: Opening Balance : Rs. 91.50 + 2013-14 : Rs 6.03 Total Imported CG - : Rs. 97.53

5. Amortized portion of Imported CG i. For the year 2013-14 : Rs. 9.75 ii. Since inception/Cumulative ( 1 Y 11 M ) : Rs. 18.69

6. CIF value of Imported RM/Consumables/Packing Material etc: i) Consumed for 2013-14 : Rs. 143.14 ii) Consumed Since inception/Cumulative ( 1 Y 11 M ) : Rs. 173.00

7. Other Foreign Exchange Outgo i. for 2013-14 : Rs. NIL ii. Since inception/Cumulative( 1 Y 11 M ) : Rs. NIL

8. Total Foreign Exchange Outgo : i. For 2013-14 [Sl No.5(i)+6(i)+7(i)] : Rs. 152.89 ii. Since inception/Cumulative ( 1 Y 11 M ) : Rs. 191.69 [SlNo.5(ii)+6(ii)+7(ii)] 9. i. Net Foreign Exchange earnings for 2013-14 : Rs. 196.26 [Sl. No. 3(i) - 8(i) ] ii. Net Foreign Exchange since inception/cumulative ( 1 Y 11 M ): Rs. 170.11 [Sl. No. 3(ii) - 8 (ii) ] 10. i. DTA Sales for theyear 2013-14 : Rs. 23.80 ii. DTA Sales Since inception / Cumulative (1 Y 11 M) : Rs. 78.78

11. i. Indigenous CG for 2013-14 : Rs. 14.34 ii. Indigenous CG Cumulative Rs. 52.42

Remarks : - The Unit has completed 1 Year 11 Months. The Unit has achieved Positive NFE for the year 2013-14 and also for the cumulative period of 1 year 11 months.

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